Banking insights: Banks Now Offer Savings Deposits Service to Businesses
Effective November 10, 1975, amendments to Federal Reserve System and Federal Deposit Insurance Corporation regulations allowed all insured commercial banks to accept savings deposits from businesses for the first time since 1933. The limit placed on the amount of these deposits is $150,000 per depositor per bank. Currently, banks can pay up to 5 percent on business savings accounts—the maximum rate permitted on any commercial bank savings accounts. Thus authorized, commercial banks can now compete on more equal grounds for business funds with savings and loan associations (S&Ls), which have not been prohibited from accepting commercial savings deposits.